Valued @37c (at least)

See final paragraph:

The Mine Shaft
by MiningNews.net
02 May 2002

Sipa prepares Waugh plans
Sinéad Mangan

SIPA Resources said it was about to embark on its "most active exploration season ever" after successfully establishing a resource of 704,000 tonnes grading 5.91gpt at its Waugh gold deposit during the first three months of the year.

Sipa said the increased exploration push was backed by strong cashflow from its Paraburdoo gold mine and reserves of $12.9 million in cash and gold. An exploration budget of $4.5 million has been allocated for calendar 2002.

The company has identified four prospects for drilling within the Parburdoo gold project - Diligence Dome South, Dinosaur, Dragonfly and Marcus - and will also focus on closely spaced drilling at a range of high-grade shoots of mineralisation identified at the Waugh prospect.

"Drilling will recommence at Waugh in early May and then proceed to the four prospects in the Paraburdoo gold project," Sipa said.

Mine planning for the development of Waugh is proceeding to schedule for the second half of this calendar year, the company said.

A portion of the Waugh deposit falls within the terms of a joint venture between Newcrest Mining (70%) and Sipa, coined the Limerick Hill joint venture.

"Preliminary pit optimisations indicate that only a small proportion of resource in the Limerick Hill joint venture is likely to translate to reserves," Sipa said in its March quarterly.

The company estimates that 212,000t of the Waugh deposit, grading 3.37gpt containing 23,000oz of gold, lies within the Limerick Hill ground.

Ore from Waugh will be treated at Sipa'’s Mount Olympus gold treatment plant, located 3km east of the deposit.

Sipa today announced it had signed an agreement to farm-in on Golden Cross Resources Broken Hill platinum group metal, gold and base metals project, located in New South Wales.

Under the terms of agreement, Sipa may earn a 70% interest in the property by completing a bankable feasibility study by May 2006.

Sipa's shares currently trade at 29c, however Macquarie resource analyst Ian Prentice recently evaluated the junior miner at 37c per share.